Fortinet, Inc.

Hello and welcome to Fortinet's second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, we will conduct a question and answer session. Please be advised that this call is being recorded. I would now like to hand the call over to Aaron Ovadia, Senior Director of Investor Relations. Please go ahead.

Thank you and good afternoon, everyone. I am pleased to welcome everyone to our call to discuss Fortinet's financial results for the second quarter of 2025. Joining me on today's call are Ken Zee, Fortinet's founder, chairman, and CEO, Christiana Olgaert, our CFO, and John Whittle, our COO. Ken will begin our call today by providing a high-level perspective on our business. Christiana will then review our financial results for the second quarter of 2025. before providing guidance for the third quarter and updating the full year. You will then open the call for questions. During the Q&A session, we ask that you please limit yourself to one question and one follow-up question to allow others to participate. Before we begin, I'd like to remind everyone that on today's call, we will be making forward-looking statements, and these forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected. Please refer to our SEC filings, in particular the risk factors in our most recent Form 10-K and Form 10-Q for more information. All forward-looking statements reflect our opinions only as of the date of this presentation, and we undertake no obligation and specifically disclaim any obligation to update forward-looking statements. Also, all references to financial metrics that we make on today's call are non-GAAP unless stated otherwise. Our GAAP results and GAAP to non-GAAP reconciliations are located in our earnings press release and in the presentation that accompany today's remarks, both of which are posted on our investor relations website. As a reminder, this is a live call that will be available for replay via webcast on our investor relations website. The prepared remarks will also be posted on the quarterly earnings section of our IR website following today's call. Lastly, all references to growth are on a year-over-year basis unless noted otherwise. I will now turn the call over to Ken.

Thank you, Erin, and thank you to everyone for joining our call. We are pleased with our strong second quarter performance, beating both our building and operation margin guidance. Building on this business momentum, we are reaching a four-year building outlook. In the second quarter, building grew by 15% and revenue grew by 14%, and we achieved a strong non-gap operation margin of 33%. Our strong top-line results were driven by continued momentum among large enterprise customers, with the total value of a deal over $1 million increased by more than 50%. This growth reflects the strength and value of our innovation, the recent global demand of our integrated solution, and the impact of our go-to-market investment. Additionally, our recent investments in the fast-growing market of unified SASE and AI-driven secure operations are continuing to deliver strong returns as buildings for both grow over 20% to a combined 35% of total buildings. Foodnet's strong momentum in SASE has been recognized by industry analysts, as we are recently named a leader in the 2025 Ghana Magic Quadrant for SASE platform, while also ranking number one in the secure branch network monetization case. We are the only vendor in the report that is also recognized in five different network security magic quadrants, which all run on a unified 40 OS. We continue to be the only vendor that has developed all core SASE capability in a single operation system, the 4DOS, including NetGen firewall, SD-WAN, ZTNA, Secure Web Gateway, CASB, and DLP. This native integrate of a NetGen firewall, SD-WAN, and SASE has become the new generation SASE firewall. making it easy for customers to adopt and upgrade while reducing complexity and operation costs, enhancing user experience, and ensure integrated hybrid secure access across both on-premise and cloud environment. Our success in unified SASE reflects the value customers place in our new generation SASE firewall, beginning with their investment in our industry-leading FortiGate firewall built on our FortiASIC. From there, most large enterprises expanded into our secure SD-WAN capability before advancing to our FortiSASE solution. As a result, 13% of large enterprise customers have purchased FortiSASE and increased over 60% year-over-year. Furthermore, we have invested around $2 billion to build and operate a global-owned infrastructure, spanning around 5 million square feet across data centers, NOC and SOCS customer supporting centers, executive briefing centers, and the research and development facility. This large-scale footprint gave us a competitive advantage in delivering fully SaaSy, fully cloud, and other cloud services. By owning and managing our infrastructure, we ensure better customer experience, better cost efficiency, strong data sovereignty, and high performance and scale. We also leverage our FortiSec technology to provide enhanced security and better management across our SaaS services. Today, we are expanding our Forti Cloud offering with three new services, the Forti Identity, Forti Drive, and Forti Connect. These services natively integrate into the FortiNet security fabric, providing centralized visibility, consistent policy enforcement, and real-time threat protection across users, devices, applications, data, and AI agents. In OT security, While we are achieving building growth of over 20%, we are recently named the overall leader in the Westland Advisor IT and OT Network Protection Platform Navigator 2025 report for the third time in a row, earning the highest ranking in both strategic direction and technical capability. We continue to invest in our AI, which we began developing more than 15 years ago, and hold over 500 issued pending AI patents, more than any other competitors. Our latest AI innovation, including fully AI protect for advanced threat detection, Food AI Assist for automating security tasks, and Food AI Secure AI for protecting AI infrastructure. As a result of our investment and recent innovations, our AI add-on solutions are the farthest growing part of our business. I would like to thank our employees, customers, partners, and suppliers worldwide for their continuous support and hard work. I will now turn the call over to Christiane.